Progressive shares fall as Q3 earnings, revenue miss expectations
Investing.com - JPMorgan has raised its price target on ABN Amro (AS:ABN) stock to EUR30.80 from EUR28.00 while maintaining a Neutral rating ahead of the bank’s upcoming strategy presentation.
The Dutch bank will present its roadmap to higher sustainable returns on November 25, focusing on profitable growth and capital efficiency. JPMorgan expects ABN Amro to announce higher share buybacks of EUR1 billion annually through 2028, representing approximately 93% total payout for fiscal years 2025-2028.
The projected buybacks would exceed Bloomberg consensus estimates by 26% in 2026 and 9% in 2027 while maintaining a CET1 ratio of around 14% by the end of 2028. JPMorgan has placed ABN Amro on Positive Catalyst Watch, noting the total yield of approximately 10% annually should be welcomed by the market.
The bank is expected to target a return on tangible equity (ROTE) of 12% with a cost-to-income ratio below 55% by 2028. JPMorgan indicates these targets appear to be already widely anticipated by investors.
Despite ABN Amro trading at what JPMorgan describes as an "undemanding" 8.3x price-to-earnings ratio and 0.8x net asset value for 2027 estimates, the firm maintains its Neutral stance, suggesting the new CEO will need to earn investor confidence through delivery on the upcoming business plan.
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